1 / 24

C 20 The Controlling Process

C 20 The Controlling Process. Compared to planning, developing org. structure, developing strategies, goals and motivating employees. Why Control?. Types of control. Controls help the manager

lela
Télécharger la présentation

C 20 The Controlling Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. C 20The Controlling Process Compared to planning, developing org. structure,developing strategies, goals and motivating employees

  2. Why Control? Types of control • Controls help the manager • Control is a process to regulate organizational activities to make them consistent with established: • Plans • Targets • Standards Acceptable level? Compare (Financial …) Effective? Need a change? process of monitoring, comparing, and correcting work performance. FedEx- 99.8% On time Delivery

  3. What Is the Purpose of Control? • It is one of the four basic management functions and has four basic functions. • Functions of control • Adapts to change. • Limits accumulation of error. • Helps coping with complexity. • Helps minimize costs.

  4. Purpose- Control helps the organization • Many things can happen during the execution of a plan • Anticipate, monitor, respond (contingency) • Rising quality standard at Metalloy • Accumulation creates a huge problem! • Defect rate rose 4% > 9% > 25% (100/250 People reworking) • 100s of raw material, large market segments, complicated work design, • Calculation based on implementation of new wood-cutting technology

  5. Levels of Control

  6. Figure 20.2: Levels of Control

  7. Who Is Responsible for Control? • Control rests with all managers. • Large corporations have a controller. • What does a controller do? • Helps line managers with their control activities. U-Form (Single) H-form (Multiple), M-form (Multiple)

  8. F20.3: Steps in the Control Process • Taco Bell • 95% greeted within 3 minutes • Preheated chips- maximum 30 mins • Tables Cleaned within 5 mins # Graduates/year … …. ….. ….. …… (Performance Indicators) Measurable Consistent with organization goal

  9. F20.4: Forms of Operational Control

  10. What Does Preliminary Control Monitor? • It attempts to monitor quality and quantity of: • Financial resources. • Material resources. • Human resources. • Information resources. • Why? • Before they become part of the system. • Ex: Employee Interview, Who can buy stocks

  11. Purpose of Screening Controls • They focus on how inputs are being transformed into outputs. • They also rely heavily on feedback processes during the transformation process. • Ex: LCD panel on TV- Check before installation

  12. Postaction Control- Focus • Focus is on outputs from the organizational system. • What do they monitor? • They monitor the output results of the organization after the transformation process is complete. • (see Figure 20.4 illustration)

  13. Financial Controls- Most common • They control the financial resources as they flow into the organization. • Then they are held by the organization. • Then they flow out of the organization. • Businesses must manage their finances so that revenues are sufficient to cover expenses and still return a profit.

  14. It is a plan expressed in numerical terms. What is the time frame for a budget? Usually a year, but sometimes broken down into quarters and months. Budgets are quantitative in nature and provide yardsticks for measuring performance and facilitating comparisons. What Is a Budget? Page 566 Strength and Weaknesses of Budget

  15. Types of Budgets • Types of budget: • Financial • Operating • Non-monetary • What the budget shows: • Sources and use of cash. • Operations in financial terms. • Operations in non-financial terms. Capital Budget at Exxon Vs. Shell and Exxon-Mobil

  16. F20.5: Developing Budgets in Organizations

  17. Other Tools for Financial Control Audit: An independent appraisal of an organization’s accounting, financial, and operational system.

  18. Structural Control • Bureaucratic Control • A form of organizational control characterized by formal and mechanistic structural arrangements. • Decentralized control • An approach to organizational control characterized by informal and organic structural arrangements.

  19. Figure 20.6: Organizational Control

  20. What Is Meant by Strategic Control • Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals

  21. Characteristics of Effective Control • Integration with plan • Flexibility • Accuracy • Timeliness • Objectivity

  22. What Influences Resistance to Control? • Over-control • Inappropriate focus • Rewards for inefficiency • Too much accountability

  23. How Can Resistance to Control Be Overcome? • When employees are involved with planning and implementing the control system, they are less likely to resist. • Verification procedures need to be developed to provide checks and balances in order for managers to verify the accuracy of performance indicators.

More Related